Bureau of Consumer Financial Protection Settles With TCF National Bank

WASHINGTON,
D.C.
— Today the Bureau of Consumer Financial Protection (Bureau) filed in federal
district court a proposed settlement with TCF National Bank regarding its
marketing and sale of overdraft services. TCF National Bank is headquartered in
Wayzata, Minn., and operates approximately 318 retail branches across
Minnesota, Wisconsin, Illinois, Michigan, Colorado, Arizona, and South Dakota.

Banks
must first obtain a consumer’s consent before they can lawfully charge
overdraft fees on one-time debit purchases and ATM withdrawals. The Bureau
alleged in its lawsuit that, when attempting to obtain this consent, TCF
obscured the fees it charged and made consenting to overdraft fees seem
mandatory for new customers to open an account. TCF has agreed to pay $25
million in restitution to customers who were charged overdraft fees and has
agreed to an injunction to prevent future violations. The proposed order filed
today would also impose a civil money penalty of $5 million. This penalty would
be adjusted to account for a $3 million penalty imposed by the Office of the
Comptroller of the Currency (OCC) in a separate order entered today. Today’s
action was taken in coordination with the OCC, with which the Bureau worked
closely on this matter.

The
Bureau of Consumer Financial Protection is a 21st century agency that helps
consumer finance markets work by regularly identifying and addressing outdated,
unnecessary, or unduly burdensome regulations, by making rules more effective,
by consistently enforcing federal consumer financial law, and by empowering
consumers to take more control over their economic lives. For more information,
visit consumerfinance.gov.